Dive Brief:
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Reuters has unearthed job posts on LinkedIn and Amazon’s site for a new Amazon restaurant division operating in Seattle in New York.
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The news comes as Amazon announced Tuesday that Seattle Prime Now customers can now order delivery from local restaurants through the service using the Prime Now mobile app. Delivery on all orders is free, for now, and is available in select zip codes, although the company will be expanding in the area.
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The development of “Amazon Restaurants” is a sign that the e-retail giant is serious about restaurant delivery. Another division “Amazon Restaurants and Travel” appears to be yet another unit Amazon is hiring for, according to Reuters.
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Amazon hasn’t commented on the Reuters report so far.
Dive Insight:
As we’ve noted, restaurant and grocery delivery services are becoming more numerous, thanks to a plethora of startups in the space.
The development could be a serious challenge to startups, even Uber, that have launched similar services. That's because Amazon, even when it’s not exactly the leader, has the logistics and data management to potentially surpass rivals. Plus, its Prime Now, AmazonFresh, and Amazon Local programs all offer one- and two-hour and same-day deliveries in many markets.
As the employment rate falls and workers are able to be pickier about pay and working conditions, those services could become more difficult for companies to sustain at the rates consumers are now enjoying. With so many moving parts, it’s all very much in flux.